AAPICO HITECH PLC [AH] Agenda 1. Company Profile 2. Industry - PowerPoint PPT Presentation

AAPICO HITECH PLC [AH]

Agenda 1. Company Profile 2. Industry Overview 3. Financial Performance 4. Strategy and Direction 2

Company Profile

AAPICO HITECH PLC [AH] AAPICO HITECH PUBLIC COMPANY LIMITED • Established in 1996 and listed on SET in 2002. • Main businesses: OEM Auto Parts, Jigs and Dies, Car Dealerships and Car Navigation. • Main locations: Thailand, Malaysia and China. Industry/Sector : Auto • Current price : Baht 24.60* Comprising of 37 companies (27 subsidiaries and 10 associates). 52 weeks range : Baht 12.00 – 27.25 • Registered and paid-up capital of Baht 322.58 million, comprised of Market Cap : Baht 7,936 million 322,583,844 ordinary shares at par value of Baht 1 each. P/E (YTD) : 9.58* P/BV : 1.19* • Treasury share is 6,007,700 shares as of August. Dividend yield : 2.69%** * Data as of August 25, 2017 ** Dividend yield is calculated based on current share price 4

AH Shareholding Structure AH AH’s main shareholders are Yeap Swee Chuan Sojitz 1.9% Corp. and family holding 39.85% of total outstanding 15.8% Yeap shares and Sojitz Corporation holding Family 15.76% of total outstanding shares. 39.8% Free-float 42.5% Thai institu- tions Thai 1.2% 79.3% NVDR 14.9% Foreign institu- Foreign tions 0.3% 4.4% * Data as of March 16, 2017 5

AAPICO’s Vision Where do we want to go? How do we want people to remember us? MANUFACTURING LEAN, GREEN, HAPPY, DIGITAL RESEARCH & DEVELOPMENT WORLD-CLASS CORPORATION CAR RETAILING Happy Customers Happy Employees Happy Shareholders Happy Public • S : Safety • Teamwork • Profitability • Corporate Social • Q : Quality • Look at problems as • Reasonable Dividend Responsibility • C : Cost opportunities • D : Delivery • Love Family, Company and • E : Engineering Country • M : Management (Focus • Loyalty and Honesty • Mutual Respect Digital) 6

Business Segment • Stamping Parts • Assemblies • Jigs Forging • Dies Machining AAPICO GROUP Navigation Data Analytics Plastic Telematics Car Dealerships 7

Country of Operations THAILAND Sales by Country Ayutthaya, Chonburi, Rayong, Samutprakarn Production : Stamping and Assemblies, Forging & Machining, Plastic, Thailand Malaysia China Jigs & Dies, Dealerships, and Car Navigation 6M17 4% 2016 6M17 3% Malaysia 24% 2016 2015 Kajang & Petaling Jaya 24% 4% 2015 Car dealers : Honda car 23% 2015 73% 2016 CHINA 73% 6M17 Kunshan 72% Production: Connecting rods and Copper Forging 8

Locations in Thailand Amata Nakorn Industrial Estate Products : Chassis Frames, Forged and Hitech Industrial Estate machined parts. Ayutthaya Products : Stamping Dies, Jigs, Stamping parts, and Car navigation Bangkok Chonburi Samutprakan Rayong Amata City Industrial Estate Products : Stamping parts and Plastic Mitsubishi Dealers: parts Ramindra Navanakorn Bangplee Industrial Estate Ford Dealers: Products : Plastic parts Ladprao Samutprakarn 9

Our OEM Customers Top OEM Customer Profile Others-Parts 22% Others-Parts; Isuzu 20% Toyota 41% 3% Toyota; 3% Isuzu; 43% AAM; 4% AAM; 4% FORD; 1% GKN; 4% FORD; 4% Nissan; 8% AAT 17% GKN; 4% [CATEGORY Nissan NAME]* 6% [PERCENTA GE] *Auto Alliance (Thailand) Co., Ltd – a JV between Ford and Mazda. 10

Our Partners Joint Ventures Strategic Partner Technical Partners 11

Sakthi Auto Holdings Limited (SGAH) On June 8, 2017, AAPICO invested US$100 million in Sakthi Auto Holdings Limited (SGAH) of which: Structure of the • deal US$50 million is recorded as equity investment. • US$50 million is loan to SGAH. ABT Auto Investments AAPICO Hitech PLC Limited 24.1% 100% 74.9% AAPICO Investment Pte. Ltd. (Singapore) 1.0% Sakthi Global Auto Holdings Limited (SGAH) (UK) 12

Sakthi Auto Product Range 13

Sakthi Auto : Manufacturing Porto, Portugal Detroit, USA Current: Iron Foundry Rushan, China Current: CNC Machining 2017: Aluminum Foundry Current: Iron Foundry 2016: Aluminum Foundry 2017: CNC Machining Current: Aluminum Foundry 2016 Revenue: US$80 Million Current: CNC Machining 2016 Revenue: US$46 Million Durango, México 2017: Aluminum Foundry 2017: CNC Machining TBD: Iron Foundry Coimbatore/Erode, India Current: Iron Foundry Current: CNC Machining 2016 Revenue: US$156 Million Latin America TBD: CNC Machining 14

Thailand Automotive Industry Update

Thailand Production Volume Q2 2016 Q1 2017 Q2 2017 YOY QOQ Production Volume 486,506 485,555 465,411 -4.3% -4.1% 1-Ton Pick-up/PPV Passenger car Others Unit: Million 1.0 0.8 0.33 0.6 0.27 0.26 0.22 0.21 0.21 0.19 0.19 0.21 0.20 0.18 0.22 0.4 0.19 0.19 0.19 0.18 0.17 0.18 0.38 0.34 0.32 0.31 0.31 0.31 0.30 0.30 0.30 0.27 0.28 0.27 0.27 0.2 0.26 0.27 0.26 0.25 0.22 0.0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Total production volume in Q2 ’ 17 dropped 4.3% yoy, mainly export sales. Source: The Federation of Thai Industry (Automotive Industry) 16

Export Volume Q2 2016 Q1 2017 Q2 2017 YOY QOQ Export Volume 287,063 284,301 252,105 -12.2% -11.3% Export Units Unit: Million 0.5 0.4 0.3 0.33 0.33 0.31 0.31 0.31 0.30 0.29 0.29 0.29 0.29 0.29 0.28 0.28 0.28 0.27 0.25 0.25 0.25 0.2 0.1 0.0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Export volume declined in all markets. Source: The Federation of Thai Industry (Automotive Industry) 17

Domestic Sales Volume Q2 2016 Q1 2017 Q2 2017 YOY QOQ Total Industry Volume 187,070 210,491 199,490 +6.6% -5.2% 1-Ton Pick-up/PPV Passenger car Others Unit: Million 0.5 Demand pulled forward prior to new 0.4 excise tax implementation 0.20 0.3 0.15 0.13 0.15 0.2 0.08 0.10 0.09 0.09 0.09 0.08 0.08 0.18 0.08 0.08 0.07 0.07 0.07 0.06 0.15 0.07 0.14 0.1 0.13 0.12 0.11 0.11 0.11 0.11 0.10 0.10 0.10 0.10 0.09 0.09 0.09 0.09 0.08 0.0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Domestics sales grew 6.6% yoy, driven by recovering economy, new models and motor show. Source: The Federation of Thai Industry (Automotive Industry) 18

Financial Performance For the 2 nd quarter of 2017

Financial Highlights Q2 Q2 Q2 Q2 2017 Results In Million Baht 2015 2016 2017 Revenues 3,574 3,681 3,903 • Revenues grew by 6.0%, driven by one-time gains, SGAH Growth% -7.6% +3.0% +6.0% interest, and higher sales in Malaysia and China. Gross Profit 121 237 228 • Gross profit margin slightly down, due to impact of lower GM% 3.5% 6.6% 6.3% margins in car dealers. SG&A 179 186 211 • SG&A included one-time SGAH expenses. Associate 25 31 68 • Interest and Tax expenses continually decreased due to loan Int. & Tax 50 42 36 repayment. Net Profit 40 133 323 • Share of profit increased yoy, largely attributable to Hyundai NP% 1.1% 3.6% 8.3% and ASICO. ROE (%) 4.6% 8.1% 12.9% • Net profit improved to B323 million or at 9.3% of sales, hence improving ROE and ROA respectively. ROA (%) 2.2% 4.1% 6.3% D/E (x) 0.61 0.51 0.81

AAPICO Group : Total Revenues Total Revenues by quarter Total Revenues Unit: in Million Baht (Jan-Jun) Auto parts Car dealers Auto parts Car dealers 4,500 3,990 3,946 3,910 3,929 3,903 6M2017, 3,681 3,672 3,619 3,574 4,000 35% 3,500 6M2016, 3,000 34% 2,500 6M2016, 2,000 66% 1,500 6M2017, 1,000 65% 500 - 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17  Q2’17 vs Q2’16 : Revenue grew 6.0% yoy, driven by B147 million gain on  Jan-Jun 2017 vs. Jan-Jun 2016 : Revenue grew by 3.4% disposal of QI, SGAH interest, and higher sales in Malaysia and China. yoy, driven by gains from disposal and SGAH interest, as well as good car sales in Malaysia and higher auto sales in  Q2’17 vs Q1’17: Revenue declined slightly by 0.6%. Lower cyclical sales China. in Thailand were partly offset by gains from disposal and SGAH. 21

Auto Parts : Sales & EBIT Sales by quarter Q1 Sales & EBIT Unit: in Million Baht Unit: in Million Baht 4,000 -2.6% 3,000 2,623 2,487 2,265 2,158 2,299 2,474 2,288 2,165 2,417 2,302 2,382 2,231 4,888 4,762 2,000 1,000 324 253 - 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 6M16 6M17  Jan-Jun 2017 vs. Jan-Jun 2016: 6M17  Sales were 2.6% lower than last year, mainly due to lower sales in Thailand, in line with CN 6% 6M16 industry trend. This was partly offset by higher sales in China, which grew 23% yoy. 5% 6M16 6M17 95% TH  EBIT improved yoy, driven by improved efficiency and cost reduction. EBIT margin 94% improved from 5.2% to 6.8% of sales. 22